01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
ATI Inc. reported strong performance in fiscal year 2025, with a 5% increase in sales to $4.6 billiona, driven primarily by robust demand in its core Aerospace & Defense (A&D) markets.
The company's High Performance Materials & Components (HPMC) segment, which derives 92% of its revenue from A&D, saw a 7% sales increase, largely due to a 21% rise in commercial jet engine sales. The Advanced Alloys & Solutions (AA&S) segment also contributed with a 3% sales increase, supported by a 15% rise in A&D sales. ATI's Adjusted EBITDA grew 18% year-over-year to $859.3 millionb, with margins improving to 18.7% of sales, reflecting favorable sales mix and pricing.
The company also generated significant operating cash flow of $614.3 millionc and continued its disciplined capital allocation, including $470 million in share repurchases. Despite overall growth, some end markets such as Medical and Specialty Energy experienced softness. The company's backlog remains strong at $3.7 billion, with approximately 70% expected to be fulfilled in fiscal year 2026.
ATI continues to focus on operational improvements and strategic capital allocation, including deleveraging its balance sheet. The company's financial position appears solid, with total liquidity of $1.1 billiond at year-end, and it has extended its ABL credit facility through June 2030.
02—Key points
Key Highlights
- Fiscal year 2025 sales increased 5% to $4.6 billion, the highest since 2012.
- Aerospace & Defense sales grew 14%, representing 68% of total sales, driven by strong commercial jet engine and defense demand.
- Adjusted EBITDA increased 18% to $859.3 million, with margins improving by 200 basis points to 18.7% of sales.
- Operating cash flow improved significantly, increasing by almost 51% to $614.3 million.
- The company repurchased $470 million of its stock in fiscal year 2025 under its share repurchase program.
- The HPMC segment saw strong growth, with Segment EBITDA up 25% to $575.8 million (23.6% of sales).
- The AA&S segment's Segment EBITDA increased 9% to $349.0 million (16.3% of sales), benefiting from favorable pricing and sales mix.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, ATI Inc kept $0.09.
- Revenue$4.59B100.0%
- Cost of revenue−$3.58B78.0%
- Gross profit$1.01B22.0%
- Operating costs−$366.1M8.0%
- Operating income$640.9M14.0%
- Interest, other & tax−$236.6M5.2%
- Net income$404.3M8.8%
Where FY2025 revenue went
$4.59B- Cost of revenue: $3.58B, 78% of revenue
- Net income: $404.3M, 8.8% of revenue
- R&D: $21.3M, 0.5% of revenue
- SG&A: $365.1M, 8.0% of revenue
- Interest, other & tax: $236.6M, 5.2% of revenue
Kept 8.8% as net incomeNet income $404.3M · 8.8%R&D $21.3M · 0.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.59B$4.36B | +5.2% |
| Cost of Revenue | $3.58B$3.46B | +3.4% |
| Gross Profit | $1.01B$898.20M | +12.1% |
| R&D Expenses | $21.30M$19.60M | +8.7% |
| SG&A Expenses | $365.10M$342.30M | +6.7% |
| Operating Income | $640.90M$608.90M | +5.3% |
| Interest Expense | $110.70M$124.20M | −10.9% |
| Net Income | $404.30M$367.80M | +9.9% |
| EPS (Basic) | $2.92$2.82 | +3.5% |
| EPS (Diluted) | $2.85$2.55 | +11.8% |
| Shares Outstanding (Basic) | 138.60M130.40M | +6.3% |
| Shares Outstanding (Diluted) | 141.80M146.60M | −3.3% |
05—Questions
Frequently Asked Questions
What is ATI's primary market and its performance in fiscal year 2025?
ATI's primary market is Aerospace & Defense (A&D), which accounted for 68% of total sales in fiscal year 2025. Sales to this market grew 14% year-over-year, driven by demand for commercial jet engines and defense applications, indicating a strong performance in its key sector.
How did ATI's financial performance improve in fiscal year 2025 compared to 2024?
ATI experienced improved financial performance in fiscal year 2025. Sales increased by 5% to $4.6 billion, and Adjusted EBITDA grew by 18% to $859.3 million, with profit margins expanding. The company also saw a significant increase in operating cash flow, up almost 51% to $614.3 million, demonstrating enhanced operational efficiency and profitability.
What is the company's outlook regarding its backlog and future growth?
ATI maintains a healthy backlog of $3.7 billion as of December 28, 2025, with approximately 70% expected to be fulfilled in fiscal year 2026. The company anticipates continued growth, particularly in the aerospace sector, with new engine designs utilizing advanced materials expected to drive demand for its products.
How is ATI managing its financial structure and returning value to shareholders?
ATI is focused on disciplined capital allocation. In fiscal year 2025, the company repaid $150 million of debentures and repurchased $470 million of its stock. It also has $120 million remaining on its share repurchase authorization and recently increased its total authorization by $500 million, signaling a commitment to returning value to shareholders while managing its debt.
06—Continue